Part-nationalised Lloyds Banking Group has reported it made a pre-tax loss of £6.3bn last year as bad debts ballooned after the HBOS takeover.

The bank, which is 41% owned by the taxpayer, made losses of £24m on bad debts - much higher than those reported by RBS on Thursday.

"There was a significant increase in impairments, which rose to £24bn from £14.9bn in 2008, principally due to the HBOS portfolios and their high level of exposure to commercial property," Lloyds Banking Group said.

However, it added that impairment charges were 21% lower in the second half of the year and it expected a similar rate of improvement throughout 2010.

"Lloyds stands by its prediction made when it took over HBOS in January 2009 that it would turn out to be a good deal," said Sky's City editor Mark Kleinman.

The group has announced that chief executive Eric Daniels gave up a potential £2.3m bonus, but as Kleinman revealed last week, Lloyds has a £200m staff bonus pool.

It is now taking legal advice over the application of the Treasury's 'supertax' on bank bonuses of more than £25,000, Kleinman said.

"According to its annual results for 2009, the bank says that its liability for the Bank Payroll Tax is not significant," Sky's City editor reported.

"It also offers the telling comment that 'the legislation has yet to be finalised and there remain significant uncertainties over aspects of its detailed application and the Group continues to assess its ultimate liability in respect of all of its schemes'."

He added that Lloyds' contribution to the Treasury's coffers through its tax on bank bonuses would be between £10m and £20m.

In a statement, the bank's chief executive said that 2009 had been "another challenging year for the financial services industry", but despite the tough market conditions, the bank's core businesses had "performed well".

"We strengthened our franchise, attracting new customers and building deeper relationships," Mr Daniels said.

"We have made excellent progress with the integration of HBOS, which we acquired in January 2009.

"The Group's capital is robust and out funding profile was strengthened considerably during the period."

He concluded that Lloyds was "well positioned to deliver value for customers and shareholders".

Lloyds added that revenues had risen by 12% to £23.96bn last year and with signs of stabilisation in the wider economy, a "significant improvement" was expected this year.

While difficult to compare due to the subsequent HBOS takeover, it said 2009 combined losses narrowed slightly on the £6.7bn in 2008.

The group has been slashing costs following the HBOS deal and financial crisis and cut 11,500 roles in 2009, while further cost saving targets may put further jobs at risk.